Source: Labour List UK
Labour’s Anneliese Dodds has accused Chancellor Rishi Sunak of taking a “sledgehammer” to consumer confidence after his spending review confirmed a pay freeze for millions of public sector workers.
Sunak announced in his statement to the House of Commons this afternoon that reports of a freeze were correct, saying: “I cannot justify a significant across-the-board pay increase for all public sector workers.”
He told MPs that over one million NHS workers would be getting a pay rise, but increases in the rest of the public sector would be paused, although those earning below £24,000 would get pay rise of at least £250.
The Chancellor also told the Commons that the national living wage would be increased by 2.2% to £8.91 an hour, and that this would be extended to those aged 23 and over, in line with Low Pay Commission recommendations.
He said borrowing would reach £394bn this year, and that the Office for Budget Responsibility has estimated the UK economy will shrink by 11.3%, with output not expected to return to pre-crisis levels until the fourth quarter of 2022.